Book contents
- Frontmatter
- Contents
- Preface to the third edition
- Preface to the second edition
- Preface to the first edition
- Table of cases
- List of abbreviations
- 1 Introduction
- 2 The shaping factors
- 3 Controls by the host state
- 4 The liability of multinational corporations and home state measures
- 5 Bilateral investment treaties
- 6 Multilateral instruments on foreign investment
- 7 Settlement of investment disputes: contract-based arbitration
- 8 Treaty-based investment arbitration: jurisdictional issues
- 9 Causes of action: breaches of treatment standards
- 10 The taking of foreign property
- 11 Compensation for nationalisation of foreign investments
- 12 Defences to responsibility
- Bibliography
- Index
3 - Controls by the host state
- Frontmatter
- Contents
- Preface to the third edition
- Preface to the second edition
- Preface to the first edition
- Table of cases
- List of abbreviations
- 1 Introduction
- 2 The shaping factors
- 3 Controls by the host state
- 4 The liability of multinational corporations and home state measures
- 5 Bilateral investment treaties
- 6 Multilateral instruments on foreign investment
- 7 Settlement of investment disputes: contract-based arbitration
- 8 Treaty-based investment arbitration: jurisdictional issues
- 9 Causes of action: breaches of treatment standards
- 10 The taking of foreign property
- 11 Compensation for nationalisation of foreign investments
- 12 Defences to responsibility
- Bibliography
- Index
Summary
The right of a state to control the entry of foreign investment is unlimited, as it is a right that flows from sovereignty. The entry of any foreign investment can be excluded by a state. But, a sovereign entity can surrender its rights even over a purely internal matter by treaty. Some regional and bilateral treaties now provide for the right of entry and establishment of investments to the nationals of contracting states. Where such pre-establishment rights are created by treaty, the denial of a right of entry to any investor from one of the contracting states would amount to a violation of the treaty, unless it can be shown that his investment is not covered by the treaty. Where the treaty permits both the right of entry and national treatment after entry to nationals of the contracting states, the right of control over the investment on the basis that the investment was made by an alien is entirely lost to each of the contracting states. Where such a treaty applies to the foreign investment, the treaty completely extinguishes the right of control the state has over the foreign investment, except where the treaty itself provides exceptions to this situation. It may still be the case that, in circumstances of necessity, the treaty rights of the foreign investor could be suspended. Yet, it has to be concluded that such treaties diminish the right of control which the state has over the foreign investor.
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- Information
- The International Law on Foreign Investment , pp. 88 - 143Publisher: Cambridge University PressPrint publication year: 2010
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